Bankrupt firms BlockFi and FTX have announced an agreement “in principle” to settle their disputes. According to a March 6 court filing, FTX has committed to paying up to $874.5 million to BlockFi, marking a potential resolution to a long-standing legal battle between the two entities. $874 Million Settlement Under the agreement terms, subject to...Read More
A settlement between defunct crypto lending company BlockFi and the collapsed hedge fund Three Arrows Capital (3AC) was approved by a US bankruptcy court on February 7. The specific terms of the settlement, though, remain confidential. According to the official document, the approval effectively resolved any counterclaims between the parties. Judge Kaplan of the New...Read More
During the early days of the latest crypto winter, BlockFi was one of the first major platforms to go bust following the collapse of TerraUSD. At the time, a shaky BlockFi was “rescued” by FTX, who offered the beleaguered crypto company a $400 million line of credit to keep it from collapsing. However, this solution...Read More
Zac Prince – former CEO of collapsed crypto lending firm BlockFi – took the stand during Sam Bankman-Fried’s trial in New York City on Friday. The CEO discussed the size of his loans to the exchange’s sister trading desk, Alameda Research, and what exactly he knew about the state of their balance sheet as one...Read More
Bankruptcy Judge Michael A. Kaplan has approved BlockFi’s third revised Chapter 11 plan during a court hearing on September 26, as indicated in a filing on the same date. This development brings the customers of the distressed cryptocurrency lending platform closer to receiving their payouts following the endorsement of its liquidation plan by a United...Read More
The leading cryptocurrency exchange – Coinbase – has reportedly started offering crypto loans to US institutional investors. The move could signal the company’s willingness to strengthen its position in America despite the regulatory uncertainty and the issues with local watchdogs. Recall that the US SEC filed a lawsuit against Coinbase in June, accusing the trading...Read More
Bankrupt crypto lender, BlockFi revealed that the US Bankruptcy Court for the District of New Jersey has conditionally approved its disclosure statement. The development essentially demonstrated that the reorganization process of BlockFi continues to make gradual progress eight months after filing the voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code....Read More
There’s no respite for BlockFi as the bankrupt crypto lender struggles to pay its creditors and customers. BlockFi has brought forward several proposals since sliding into bankruptcy last year owing to the market turmoil. However, FTX’s latest legal filing poses a hurdle for the now-defunct company as it accuses BlockFi of abusing the planning process....Read More
The United States Securities and Exchange Commission (SEC) has given up its slot as one of the first creditors to be repaid by the insolvent crypto lending platform BlockFi. The move comes as the SEC is facing intense pressure from a legal battle against the cryptocurrency exchange, Binance. U.S. SEC Forfeits Front-Row Seat for Investors...Read More
Bankrupt lending platform BlockFi needs to conduct updates before enabling customer withdrawals of crypto assets held in its wallet accounts that are not subject to potential preference claims. In an emailed statement to its clients, BlockFi said it should conclude all the necessary “work” to enable customer withdrawals by this summer. The company said it...Read More
Bankrupt crypto lender Blockfi has requested that a court authorize the sale of its lending business as it looks to generate funds to repay creditors. The move comes after futile attempts to sell the lending platform to a third party. BlockFi disclosed that it did not receive value-maximizing offers from potential buyers. BlockFi Looks to...Read More
The cryptocurrency lending platform – BlockFi – agreed to provide more than $100,000 in refunds to Californian customers affected by the firm’s collapse. The former giant in its field passed through severe turbulence last year caused by the Terra crash and the FTX meltdown. Its massive exposure and close relation with the exchange led to...Read More
Silicon Valley Bank and the crypto-friendly – Signature Bank – disclosed operational difficulties and were closed down by regulators. While some expect the collapse to prompt a domino effect, numerous cryptocurrency-related companies have already suffered losses because of their exposure to the aforementioned institutions. Let’s have a closer look. SVB’s Impact As CryptoPotato reported last week,...Read More
Bankrupt crypto lender BlockFi has filed a motion to dismiss the bankruptcy case for Emergent Fidelity Technologies, the holding firm owned by Sam Bankman-Fried (SBF), founder and former CEO of FTX. In the motion, filed on Thursday in the United States Bankruptcy Court for the District of Delaware, BlockFi argued that Emergent is not eligible...Read More
Bankrupt crypto lending platform BlockFi received court approval to put its Bitcoin mining business up for auction. The company plans to sell its equipment as fast as possible, to take advantage of currently favorable market conditions. Selling While They Can BlockFi lawyer Francis Petrie told US Bankruptcy Judge Michael Kaplan on Monday that the company...Read More
BlockFi, already rattled by prior exposure to 3AC, was forced to file for Chapter 11 bankruptcy shortly after the FTX Group went down, taking a sizable number of crypto-related companies with it. The FTX Group’s relationship with BlockFi was two-sided – on one hand, the exchange had previously extended a line of credit to BlockFi,...Read More
The embattled crypto company has around $160 million in loans backed by 68,000 Bitcoin mining rigs which it needs to sell. The New Jersey-based firm started the bidding process for the loans last year, according to a Jan. 24 Bloomberg report citing ‘people familiar with the matter.’ They added that some of these loans have...Read More
The cryptocurrency-focused bank – Silvergate Capital – reported a net loss of $1 billion for the last quarter of 2022 due to the turmoil reigning in the digital asset sector. The firm recently laid off nearly half its workforce amid massive client withdrawal requests. The Disappointing Q4 The fourth quarter of 2022, with its market...Read More
BlockFi said it plans to disclose assets and liabilities, as well as statements of certain payments made by the platform to insiders and other parties prior to its bankruptcy filing in November. In the latest update, the embattled crypto lending announced it would file both its Schedules of Assets and Liabilities and its Statement of...Read More
Rishi Ramchandani – a former executive at the bankrupt crypto platform BlockFi – became the APAC Web3 Lead of Google. The world’s largest search engine argued earlier this year that Web3 is a market that demonstrates “tremendous potential” and established a dedicated team. Finding Shelter in Google In a recent post on LinkedIn, Ramchandani said he...Read More
BlockFi sought permission from the US Bankruptcy Court to allow its customers to obtain their crypto holdings (locked in BlockFi Wallets due to the firm’s problems). The firm paused withdrawals on November 11, the same day FTX and Alameda Research filed for Chapter 11 Proceedings in the United States. It goes without saying that BlockFi...Read More
The collapse of the cryptocurrency exchange FTX will go down as one of the darkest moments in crypto’s history. The company experienced severe liquidity issues in November and couldn’t honor the withdrawal requests of its customers. Binance – the world’s largest crypto platform – was ready to acquire the exchange but, after auditing, walked away...Read More
Silvergate Capital Corporation – a digital asset bank based in California – revealed its deposit relationship to the troubled crypto firm BlockFi was limited to less than $20 million of its total deposits. The latter filed for Chapter 11 bankruptcy protection in the United States earlier this week, becoming the next leading company in the...Read More
Shortly after filing for Chapter 11 bankruptcy protection, the distressed crypto lender has gone after Sam Bankman-Fried’s Emergent Fidelity Technologies entity. BlockFi’s filing involves shares of Robinhood that the once-FTX boss purchased earlier this year. The US-based crypto lender filed for bankruptcy yesterday in a New Jersey court, as reported, but also launched a lawsuit...Read More
Another former cryptocurrency giant has filed for Chapter 11 bankruptcy protection in the United States. Thus, BlockFi has followed the example of companies like Celsius and Three Arrows Capital. The cryptocurrency lender’s troubles began as the bear market intensified earlier this year, especially after the Terra collapse. There seemed to be a lifeboat thrown by...Read More
Crypto exchange CoinList said it is not near bankruptcy as it addressed the ongoing FUD. It added that it is not insolvent or illiquid and is just experiencing technical issues affecting deposits and withdrawals. The platform dismissed the rumors on Twitter after users reported difficulties with fund withdrawals for over a week and said the...Read More
BlockFi is looking for answers to its liquidity troubles caused by its heavy exposure to FTX – and bankruptcy is reportedly on the table. The crypto lending firm is already preparing a potential bankruptcy filing, people familiar with the matter told the Wall Street Journal. It’s also reportedly planning to lay off workers – a...Read More
BlockFi was one of the lenders that found itself in troubled waters following the crypto credit crisis. As forced selling and liquidity issues began to take a toll on investors, the industry, which was already buffeted by inflation and other macroeconomic agents, witnessed several companies, including Celsius and Voyager, go bankrupt. But BlockFi managed to...Read More
To become rich is everyone’s dream but to be rich by chance is not everyone’s fate. However, this isn’t a lottery-winning story that sounds crazier than fiction or an inventor who made a fortune from an accidental invention. This is a story about how CryptoCom accidentally transferred a whopping $10.5 million to a woman in...Read More
The hobbled crypto lender released a transparency report for the quarter, which detailed its financial position amid the turmoil. In addition to $1.8 billion in outstanding loans, BlockFi’s net exposure amounted to $600 million. BlockFi’s Q2 Results As of June 30th this year, the company’s outstanding loans to institutional borrowers were approximately $1.5 billion. On...Read More
